Business

The accounting practices chosen by managers can be studied through the use of a socio-economic paradigm to better explain the factors that influence data provided for the capital markets. Managers can then better understand the link between socio-economic concerns and the company's value. Paradigms are used by social science researchers to examine the relationship between people, their aims and the way these aims are pursued. A socio-economic paradigm could be more predictive than the existing economic paradigm.